Re Electricity Costs: How Savvy Building Owners Can SAVE: (If They Understand the Restructuring Power Industry)

Abstract

ABSTRACT This article discusses the physical capabilities the building equipment must have in order to participate in real-time energy and reliability service markets. It also discusses the decision process the building operator will want to go through to minimize its energy costs, considering all of its options and costs. Since energy and contingency reserve prices are volatile, building owners and operators will want to move between these markets dynamically. It is likely that the decision process, while remaining under the building operators control, can be automated. Similarly, the requirements for price disclosure, communications, aggregation, monitoring, and certification on the bulk power system side are discussed. Finally, we discuss how the entire system could operate to the benefit of both the building owner and the power system.